China grows as Europe takes a hit

A revival of fortune for the manufacturing sector in China. Preliminary results from a factory survey highlighted the pace of economic growth in the sector has picked up again after seven consecutive quarters of slowdown.

One Purchasing Managers’ Index rose to a 13-month high cementing the view of many analysts the world’s second largest economy has gathered pace.

“I think this confirms that momentum is continuing to pick up as we go into the fourth quarter, and that the selective easing by the Chinese authorities is now having a greater impact,” explained Geoff Lewis of J.P.Morgan Asset Management

In the eurozone statistics are in sharp contrast to China’s with business surveys pointing to the economy being on course for its weakest quarter for three years.

Service sector firms like banks and hotels were heavily hit this month and laid off staff at a faster pace.

In manufacturing the monthly rate of decline eased more than economists feared but the flash service PMI fell to its lowest reading since July 2009.